Clean and Efficient Modern Unit to help meet Future Load Growth
The Woodlands, Texas – In a move that will help meet the energy needs of southeast Texas while keeping costs to customers down, Entergy Texas, Inc. today announced that it has entered into an agreement to purchase a portion of the Union Power Station near El Dorado, Arkansas.
“We are focused on providing clean, reliable, low cost service to our customers while supporting growth in the communities we serve,” said Sallie Rainer, Entergy Texas president and chief executive officer. “The acquisition of this highly efficient unit will help us modernize our generation fleet and meet increased demand in the region.”
The Union Power Station, a 1,980-megawatt (summer rated) generating facility, entered commercial service in 2003 and consists of four highly efficient combined-cycle natural gas-fired generating units, or CCGTs, each rated at 495 MW. Under the Asset Purchase Agreement, Entergy Texas and Entergy Arkansas, Inc. have each agreed to acquire one unit, and Entergy Gulf States Louisiana, L.L.C. has agreed to acquire two units.
The plant purchase price is approximately $948.0 million ($479/kW), or $237.0 million per unit, subject to adjustments. The purchase price is approximately half the cost to build a comparable new CCGT facility.
The purchase is contingent upon, among other things, obtaining necessary approvals, including acceptable cost recovery, from the various federal and state regulatory authorities and the expiration of the waiting period under the Hart-Scott-Rodino antitrust law. The targeted closing date is late 2015.
Entergy Texas, Inc. delivers electricity to more than 426,000 customers in 27 counties. It is a subsidiary of Entergy Corporation. Entergy is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including more than 10,000 megawatts of nuclear power, making it one of the nation’s leading nuclear generators. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas.
Additional investor information can be accessed at www.entergy.com/investor_relations
In this news release, and from time to time, Entergy Texas makes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Except to the extent required by the federal securities laws, Entergy Texas undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Forward-looking statements involve a number of risks and uncertainties. There are factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including (a) those factors discussed in this news release and in Entergy Texas’ most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Entergy Texas’ other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with rate proceedings, formula rate plans and other cost recovery mechanisms; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory risks, including any changes resulting from the nuclear crisis in Japan following its catastrophic earthquake and tsunami; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Vermont Yankee or any of Entergy’s other nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; and (g) economic conditions and conditions in commodity and capital markets during the periods covered by the forward-looking statements, in addition to other factors described elsewhere in this release and subsequent securities filings.